JimGant

Not likely. Whether we're talking remitted cash flow, or worldwide cash flow -- Thailand won't have the needed data to identify whether or not that cash flow is non income (savings), or if income, whether it's assessable income per DTA, or not. Thus, it will all be self-assessment by the tax payer, and TRD will have to give the benefit of the doubt. The best they can do in enforcement is the occasional random compliance audit.

Thomas Jefferson tried that.

So, the UK-Thai tax treaty is worthless, i.e., you can't use the treaty's tie breaker language to determine which country has primary taxation rights, and the other secondary taxation rights? This would mean double taxation, which I doubt an expat Brit would stand for.... But, hey, King George tried SRT a few centuries ago, telling Americans they were honorary British residents, for tax purposes. We know how that ended.

Ok. But for tax treaty purposes, where, again, you have to determine which country is your tax treaty country of tax residence ('cause of the exclusionary or primary taxation rights language), you have to resort to the treaty's tie breaker language. From the link you provided:

....and just thank your lucky stars that great grandpa's hijacking into a slave ship allowed you to experience opportunities only offered by America -- not sub Sahara Africa. That you didn't avail yourself of those opportunities.... .? Well, ridiculous to think I should pay you for this oversight of opportunity.

Old, disabled folks using Digital Wallet? Hopefully they have IT literate grandkids to help.

Well, no -- not for treaty purposes. All treaty language gives the country of residence priority in taxation rights for many categories of income -- either exclusionary or primary. So, there can't be a "both" situation. The language for tie breaking residence situations in most DTAs is pretty straightforward: Where do you live most of the year; what country has your primary residence; etc. Can't reach an agreement? Well, then you go to the "competent treaty authorities" for a decision (who the he-- are they -- and how would you ever engage with them......). Oh well.

If memory serves, the remitting taxation aspect for UK taxpayers pertains only to non domiciled residents -- and is where taxation on credit card purchases is covered. Non dom "residents" is a strange animal, at least it appeared so when I tried to figure out from HMRC literature on how you become one. Any Brits out there a non dom UK resident? If so, could you explain how you acquired this status -- and how you tie break your Thai tax residency status with your UK tax residency status. Thanx.

Actually, this is almost verbatim what our Bangkok Bank branch manager told us several years ago. Her explanation was: If a bank does not know of your death, they have no legal responsibility to freeze your account -- and withdrawals, per usual, can occur. Wife has already been told to withdraw most of my funds (leaving small amount, and account open) soonest -- even before my barbecue.

Not advice, but an observation. Sounds like you have done research concerning the legal requirement for somebody -- police, hospital, embassy, whomever -- to ferret out where you bank and then notify this bank(s) of your death. Could you please share this information? Thanx.

If you read that referenced thread, you'll see that there have been situations where (confused) bank managers have frozen joint accounts. So, maybe best to transfer to her personal account. And, yeah, the bank has no avenue to ever hear of your death -- embassy, hospital, wat, whatever -- no legal requirement to notify your bank -- not that they would ever know what that bank is....

Yeah, with online banking -- have her do it fast, in case the bank finds out about your death and freezes your account (thereby she'll have to rely on a many-month probate process). Supposedly, she's supposed to go the probate route. But, especially if she's the sole beneficiary in your Wiil, there's no aggrieved party to press charges. Another thing you might do is make her co-signatory on your account. This doesn't mean it's joint, so there's no affect with immigration. But, it allows her to access your account, so if you're terminal, she can tap your account perfectly legally. And, if you're dead -- where, supposedly, co-signatory status is no longer in effect -- this erstwhile status just adds further credence to her bonafides, along with her being sole beneficiary in you Will. Only the lawyer mafia, out a probate fee, will be concerned. Too bad.

Why? Would any Thai taxes due, per DTA, not be a one for one against your US tax return? Or, do you have such substantial Long Term Cap gains, that Thai taxes on would, as a credit, overwhelm your US taxes? Can't think of any other scenario where you might lose money with any new Thai tax scheme.

This thread is about what happens if Thailand switches to worldwide taxation. If they do,the remittance aspect of taxation avoidance disappears. So using remitted gifts for tax avoidance will no longer be a player.

Agreed. Most Yanks I know don't live off substantial annual LT cap gains and dividends. But, yes, there are some.

Sorry. They're all fixated with the blood in the water.

What is it about tax credits that you don't understand? The DTA between Thailand and US designates which country has primary taxation rights -- and thus gets to keep all taxes collected -- and which country has secondary taxation rights -- and has to absorb a credit for the taxes paid to the primary country. Have an IRA or private pension? DTA says Thailand has primary taxation rights. So, you have to file with them, and pay full-up taxes -- no credit from US. But, you also have to file with the US (per saving clause, meaning US always has at least secondary taxation rights). As such, when you file your US return, you use a tax credit for the Thai taxes paid to reduce one-for-one your US taxes for the taxes paid Thailand. Bottom line: Your tax bill under this new worldwide Thai taxation scheme will be the same as if you never paid taxes to Thailand. So, file in March with Thailand, and pay their taxes on your declared private pensions and IRAs. Then, file with US, and reduce your tax bill by the Thai tax credit. Like to file early with US? You can figure out on the back of an envelope what your Thai tax will be on the US pensions/IRAs, by January. US doesn't need any formal paperwork to justify the tax credit, so just go ahead with your US tax return, with the numbers from the back of the envelope. Not too complicated. No double taxation -- unless you think having to file with two countries defines "double taxation, " but ignoring the credit aspect.......?

Are you currently paying US taxes on this retirement income?

Two scenarios here. If Thailand, per DTA, has primary taxation rights on income, like private pensions -- they keep all the taxation, as if US taxation, and its credit, didn't exist. They don't lose any taxation collection due to a US tax credit, as no such credit needs to be absorbed. Only the US has to deal with absorbing a Thai taxation credit, due to having only secondary taxation rights. Second scenario, much rarer is: Rental income on property in US. US has primary taxation rights on this income, thus gets to keep all taxation, without any regard to a credit. DTA, however, gives Thailand secondary taxation rights on this rental income -- but Thailand has to absorb a credit for the taxes paid to the US. Thus, credit could completely wipe out any Thai taxation - if US taxation were higher than Thai taxation. But, if Thai taxation higher, they get to keep what's left after the credit.

Definitely.

Many because -- their assessable income doesn't reach the threshold for becoming taxable income.

Why file jointly, adding your income to the wife's 25% tax rate? File singly, and your numbers will be a lot better.

Why would they be called into TRD? Is TRD going to try and identify farangs living here over 180 days per year? And if identified, that their mediocre annual remittances indicate assessable income --- rather than, in most cases, nonassessable gov't pensions, or social security (and if Canadian, private pensions)? Come on. Even TRD can do cost/benefit analyses.

Why? As an upper middle class Yank, whose only capital gains are within my IRA's (and thus taxable as ordinary income) -- my total income tax paid between Thailand and the US won't change one iota. Yes, I'll now have to file a Thai tax return, and pay taxes on that income designated by the DTA. But my US tax return will have a one-for-one reduction in taxation via the tax credits from my Thai taxation. Thus, my total tax bill between the two countries will be the same as before Thailand goes to worldwide taxation. I mentioned capital gains, because that is the on spot where Yanks can be hurt, since Thailand's taxes on such will exceed by a lot US taxes on long term cap gains. So, yeah, maybe some Yanks, living off cap gains, will feel the pain. Just wonder how many of those types are here in Thailand.....

You think TRD has the resources to parse all remittances into Thailand to determine assessable income?